An optional passphrase, often referred to as the "25th word," is an additional secret that extends your wallet's recovery seed. Unlike a traditional password, this passphrase becomes an integral part of your master secret, leading to the creation of a completely new wallet. Every unique passphrase generates a distinct wallet, and without the exact passphrase, accessing your funds becomes impossible.
Benefits of using a passphrase
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Enhanced backup security
Incorporating a passphrase allows you to store your backup in separate locations. Even if someone gains access to your recovery words, they cannot access your funds without the passphrase, provided it is sufficiently complex. -
Protection against physical attacks
Should your hardware wallet be physically compromised, a passphrase adds an extra layer of security. Without knowledge of the passphrase, unauthorized access to your funds remains thwarted.
Risks and considerations
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Irreversible loss due to forgetting the passphrase:
Forgetting or misplacing your passphrase results in the permanent loss of access to your funds. Unlike recovery words, there is no way to retrieve a forgotten passphrase. -
Typographical errors:
Entering an incorrect passphrase, even by a single character, leads to the creation of a different, empty wallet. The BitBox02 assists in mitigating this risk by displaying the entered passphrase for verification before finalizing access.
Best practices for passphrase usage
- Complexity: Use a passphrase that is long and includes a mix of uppercase and lowercase letters, numbers, and special characters.
- Secure Storage: Store your passphrase separately from your recovery words, in a secure and private location.
- Consistent Entry: Always double-check the passphrase when entering it to avoid typographical errors.
Conclusion
Implementing an optional passphrase with your BitBox hardware wallet can significantly enhance security but requires careful management. Ensure you fully understand the implications and responsibilities before enabling this feature. Proper handling and secure storage of both your recovery words and passphrase are paramount to safeguarding your cryptocurrency assets.
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